Final answer:
Margo will pay $42.67 in interest for the 8-month loan period. The calculation is based on simple interest formula I = PRT, with P being the principal of $800, R being the annual interest rate of 8%, and T being the time in years.
Step-by-step explanation:
To calculate the interest Margo will pay on her $800 loan with an annual interest rate of 8%, taken for 8 months, we will use the formula for simple interest. The formula for simple interest is I = PRT, where I is the interest, P is the principal amount (the initial loan), R is the annual interest rate (as a decimal), and T is the time the money is borrowed for, in years.
First, convert the annual interest rate of 8% into a decimal by dividing by 100: R = 8/100 = 0.08.
Next, convert the time period of 8 months into years since the rate is annual: T = 8/12.
Now plug these values into the formula:
I = PRT
I = $800 × 0.08 × (8/12)
I = $800 × 0.08 × 0.6667
I = $42.67
Therefore, Margo will pay $42.67 in interest for the 8-month loan period.